# Question 4

4.1 Sylvia wants to buy a Defy dishwasher which is priced at R9 899 by means of a hire purchase agreement.

The conditions of the hire purchase agreement are as follows:

• Sylvia must pay a 30% deposit of the purchase price
• Interest is charged at 12% per annum simple interest on the balance
• Compulsory monthly insurance premium of R65,30
• The balance must be paid in monthly instalments
• Account should be settled in 36 months

4.1.1 Calculate the balance after Sylvia has paid the deposit. (2)

4.1.2 Calculate her monthly installment, if the settlement must be settled in 36 months. (5)

4.2 The table below shows the exchange rate of the British pound and the US dollar in South African rand.

4.2.1 George, a visitor from England, saw an industrial textile machine on sale for \$6 800. This machine is suitable for his business back at home. The cost for a similar machine in England is £4 600. Calculate in which country will it be cost saving for George to buy the machine. (3)

4.2.2 To install an outdoor swimming pool will cost you £800 in England. How much will it cost you to install a swimming pool of the same capacity in South African rand? (2)

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